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so are gold and silver some of the worst recent investments ever?

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  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    edited July 8, 2022 2:54PM

    I'm not a whisky or bourbon drinker--drank a bottle of Cutty Sark when I was 14 or 15 and never went back. :#
    But I do think there is room in a balanced portfolio for atypical items that might appreciate over time and/or might be used as a "gift" for the right person in the right occasion. So far so good :)

    Love the idea of local, in a slightly different way. I posted this mezcal I picked up recently. Back in the 1990s, Del Maguey's founder Ron Cooper started exploring tiny local producers of mezcal in Oaxaca, Mexico (palenques) and struck up a 50%-50% split with the best of the best: They'd provide the local mezcal, he'd provide the bottling and worldwide distribution. Del Maguey distributes a couple dozen "single village" mezcals, each with their own distinct flavor profile from local yeasts, water, soil, etc.

    This one in particular had a really interesting story. The plants from which mezcal is made (agave or maguey) take about 8 years to mature. Then they are harvested, roasted, mashed and fermented. After distilling it's mezcal. Cooper made local land owners in Teotitlan del Valle, Oaxaca, a deal where he planted a couple acres of agave in 2004 and they'd nurture the plants until harvest. Fast-forward to harvest time, and the farmers hand completely neglected the plants, leaving smaller plants with really deep roots. They harvested and produced the mezcal anyway, resulting in a special wild and mineraly mezcal they named Del Maguey Chichicapa "Boca del Cerro". They bottled it, "rested" it for 4 years, then released it in 2019. But the smaller size agave and single harvest only made 1,062 bottles. Of which I own 3 :)

    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
  • 2ltdjorn2ltdjorn Posts: 2,329 ✭✭✭✭

    I think so. looking at my holdings I liquidity last year, they provided security but in the end failed to demonstrate the value of compound growth that I have had in my retirement accounts. plus the manipulation of both silver and gold are beyond the control of my meager holdings.

    I enjoyed it, they provided security.

    the focus on collapse of economies and such is tiresome. if it all goes to shit, I think personal skills/knowledge will prevail.

    WTB... errors, New Orleans gold, and circulated 20th key date coins!
  • JimTylerJimTyler Posts: 3,392 ✭✭✭✭✭

    I have a life long accumulation of stuff filling my basement that is a much worse investment.

  • ashelandasheland Posts: 23,189 ✭✭✭✭✭

    I like bullion and stacking, but I like numismatic holdings even better. I like to have both.

  • Cougar1978Cougar1978 Posts: 8,219 ✭✭✭✭✭

    It’s all about timing.

    Coins & Currency
  • jmski52jmski52 Posts: 22,847 ✭✭✭✭✭

    I recently sold of some modern AGEs and Buffalos.

    Kudos for helping your daughter.

    Pertaining to the OP's post, how did you do on the sales? I'm guessing that it wasn't one of your "worst recent investments ever".

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • Downtown1974Downtown1974 Posts: 6,795 ✭✭✭✭✭

    @jmski52 said:
    I recently sold of some modern AGEs and Buffalos.

    Kudos for helping your daughter.

    Pertaining to the OP's post, how did you do on the sales? I'm guessing that it wasn't one of your "worst recent investments ever".

    Nope….quite the contrary. Average purchase price was $1300 - $1350 an oz. sold for $1900 an oz.
    Once she graduates, I plan on replenishing.

  • CakesCakes Posts: 3,629 ✭✭✭✭✭

    @JimTyler said:
    I have a life long accumulation of stuff filling my basement that is a much worse investment.

    Just make sure it's off the floor/raised. My buddy lost about half of his really nice Civil War collectible book collection to a basement leak related to a faulty sub pump.

    Successful coin BST transactions with Gerard and segoja.

    Successful card BST transactions with cbcnow, brogurt, gstarling, Bravesfan 007, and rajah 424.
  • GiveMeProofGiveMeProof Posts: 618 ✭✭✭✭

    Gold is out of my league, but I like silver. Not as an investment I just like it. One thing I don't understand is for example, 90%. As the price of silver has been falling the premium is still like 22X face. What would cause any fluctuation in premium? Is it because the price is dropping that the premium is so high? Or is it the supposed "silver shortage"? Alot of smart people here. Please explain. Thanks.

  • blitzdudeblitzdude Posts: 5,891 ✭✭✭✭✭

    Supply and demand. Tiny "physical" guttetr market and just enough Reddit midgets to keep premiums collecting all time highs. If you have any patience in your soul wait SHORT bit and purchase the gutter for much less. All you have to do is look at HISTORY.2281!

    The whole worlds off its rocker, buy Gold™.

  • GiveMeProofGiveMeProof Posts: 618 ✭✭✭✭

    I am a patient man. Thank you @blitzdude.

  • conrad99conrad99 Posts: 375 ✭✭✭

    It takes some time to become financially literate, but you can do it within a few weeks, just studying part-time.

    FWIW, one of the most frustrating aspects of the whole situation for me is watching our fearless leaders learning everything as if for the very first time..

    https://www.kitco.com/news/2022-07-13/This-is-why-gold-is-below-1-800-even-as-U-S-inflation-hits-a-40-year-high-at-9-1.html

  • SkyManSkyMan Posts: 9,493 ✭✭✭✭✭

    If you look at the average closing price of the Dow Jones in 1971 it was 884.87. In August of 1971 Nixon took the US completely off the gold standard. The price of gold on 12/31/71 was $43.62.

    As of today, the Dow is roughly 36.76X what it was in 1971. Gold is roughly 39.82X where it was on 12/31/71. If you look SOLELY at those numbers, gold has outperformed the Dow Jones by roughly 10%.

    HOWEVER, a MAJOR difference between the two is that you would have gotten zero income from gold over the intervening 51 years, and you would have had to pay for storage. With major stocks like in the Dow Jones, you would have gotten dividend income, that would have compounded through the years, but you would have had to pay taxes on that income too. Net net, you'd be ahead on the Dow Jones, but not necessarily hugely ahead.

    In the long run we are all dead. IMO a diversified portfolio is the best way to go. You don't get nearly as much upside, but you don't have a heart attack on the downside. Figure out what allows you to sleep well at night and invest that way.

  • blitzdudeblitzdude Posts: 5,891 ✭✭✭✭✭

    Sleeping like a baby. RGDS!

    The whole worlds off its rocker, buy Gold™.

  • PerryHallPerryHall Posts: 46,132 ✭✭✭✭✭

    @blitzdude said:
    Sleeping like a baby. RGDS!

    You wake up in the middle of the night screaming for a diaper change? :o

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • jmski52jmski52 Posts: 22,847 ✭✭✭✭✭

    Net net, you'd be ahead on the Dow Jones, but not necessarily hugely ahead.

    True enough, but gold is a physical asset, which does have advantages over a paper document or a share of stock that's only owned electronically in some broker's IT system.

    IMO a diversified portfolio is the best way to go.

    Statistically and historically, this is true.

    you don't have a heart attack on the downside. Figure out what allows you to sleep well at night and invest that way.

    PMs have worked for me this way for over 35 years now.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • OPAOPA Posts: 17,121 ✭✭✭✭✭

    Holding PM's for the long term may not be the worst, but far from the best. Just like any asset class, your success depends on lucky timing with your purchase or sale.

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • derrybderryb Posts: 36,818 ✭✭✭✭✭
    edited August 8, 2022 9:04AM

    @OPA said:
    Holding PM's for the long term may not be the worst, but far from the best. Just like any asset class, your success depends on lucky timing with your purchase or sale.

    I've had my life insurance policy for over 50 years. Bad investment? yes. Good protection for my family? yes.

    Dollar insurance is no different. Especially in recent years.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • OPAOPA Posts: 17,121 ✭✭✭✭✭

    @derryb said:

    @OPA said:
    Holding PM's for the long term may not be the worst, but far from the best. Just like any asset class, your success depends on lucky timing with your purchase or sale.

    I've had my life insurance policy for over 50 years. Bad investment? yes. Good protection for my family? yes.

    Dollar insurance is no different. Especially in recent years.

    I agree with your assessment regarding life insurance.....Having PM's for so called "dollar insurance" is a looser. PM's have not kept up with inflation, rising costs and increased earnings in wages. Prime real-estate, land & classic paintings would have resulted in a more stable so called "dollar insurance." However, to each their own. What ever makes your life more comfortable.

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • derrybderryb Posts: 36,818 ✭✭✭✭✭

    diversification makes my life more comfortable and it includes PMs. Do not let the fact that I advocate PMs lead you to believe my insurance policy is limited to PMs. If this were a real estate forum I would be advocating real estate as dollar insurance. LOL

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,122 ✭✭✭✭✭

    @derryb said:
    If this were a real estate forum I would be advocating real estate as dollar insurance. LOL

    You've discussed RE on this forum previously and usually negatively in regards to it demanding taxes, maintenance and insurance costs.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,818 ✭✭✭✭✭
    edited August 8, 2022 10:31AM

    All investments have a cost. Real estate is not excluded. You will note that I have also in the past discussed the costs associated with holding physical PMs yet I still advocate holding them. And yes, in addition to a personal residence I hold other real estate as an investment. Once again your effort to paint me as contradictory fails miserably.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • @WingedLiberty1957 said:
    I know i will get a lot of pushback, bring it on! But gold and silver didnt really participate in the huge bubble inflated during post financial crisis of 2008. Things like stocks and bitcoin and real estate did much better. Those bullion lovers always said, just wait until the bubble pops and inflation heats up. So we have those bubbles popping now and inflation is up over 10%, meanwhile gold and silver are dropping like rocks. So when do gold and silver actually outperform?

    We are on the precipice. Won't be much longer when Gold and Silver are finally set free from their artificial price controls.

  • cohodkcohodk Posts: 19,122 ✭✭✭✭✭

    @derryb said:
    Once again your effort to paint me as contradictory fails miserably.

    Actually, it is your contradictions that have benefitted me greatly. No failing, but rather much success.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • cohodkcohodk Posts: 19,122 ✭✭✭✭✭

    @Edges said:
    We are on the precipice. Won't be much longer when Gold and Silver are finally set free from their artificial price controls.

    Must be derryb's new alt. Lol

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,847 ✭✭✭✭✭

    We are on the precipice. Won't be much longer when Gold and Silver are finally set free from their artificial price controls.

    I wouldn't hold my breath on that one. The gov.com holds all the cards, except for one important little detail - .physical delivery - and nobody's talking about who has what.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • blitzdudeblitzdude Posts: 5,891 ✭✭✭✭✭

    @PerryHall said:

    @blitzdude said:
    Sleeping like a baby. RGDS!

    You wake up in the middle of the night screaming for a diaper change

    Not in the depends just yet. Perhaps someday if I'm lucky. RGDS!

    The whole worlds off its rocker, buy Gold™.

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